Target has reached an agreement with Visa over a massive breach of customer's payment data during 2013 which raised serious questions about the company's data security systems. The 2013 hack, which is estimated to have cost banks more than $200m, resulted in the theft of about 40m customer's credit card details, and about 70m customers' names and contact details.
The company said the required number of card issuers had entered into the agreements. It declined to say how much the issuers would be reimbursed. However, a person familiar with the settlement said the amount that Target had agreed to fund Visa and its issuers was up to $67m.
The number of identity and credit card data theft hit a record high of 783 in the US in 2014, a 27.5% increase from the previous year.
Some claim that this settlement is only a start, credit unions should be fully compensated for their losses and that Congress should enact national data security standards to hold retailers directly accountable for their breaches.